Apple’s Huge Buyback Will Need to Come With Blowout Earnings

A massive buyback may not be enough for $Apple (AAPL.US)$ investors amid the worst month for big tech since the global financial crisis. The market’s reaction to Alphabet Inc.’s report shows it will also need blowout earnings.
Seen as a safe haven within the FAANG cohort, Apple is expected to announce a share buyback program of as much as $90 billion when it unveils its quarterly results after the close on Thursday.
But that alone may not be enough to buoy the stock. Shares in Google’s parent company fell in premarket trading on Wednesday, even after the company announced a $70 billion buyback of Class A and Class C shares. Investors focused instead on a quarterly earnings per share miss, slower ad sales in Europe and a lackluster performance for YouTube $Alphabet-C (GOOG.US)$ $Alphabet-A (GOOGL.US)$ .
For Apple, buybacks have become a central part of the investment case, and are especially important during turbulent times for technology stocks. Investors like repurchase programs as they reduce a company’s share count and thereby provide a lift to earnings.